Bathroom retailer Victorian Plumbing has announced the acquisition of online only UK bathroom retailer Victoria Plum, which is headquartered in Doncaster.
The purchase price for the acquisition is £22.5m, on a cash free, debt free basis, subject to adjustment for normalised working capital, and the acquisition has been funded from the company’s existing cash reserves. The purchase price represents half of Victoria Plum’s estimated annual revenue and reflects the significant strategic value to the company of the Victoria Plum brand and its associated intellectual property. Victorian Plumbing said its expectation is that Victoria Plum will broadly break even in the second half of 2024.
Given that Victoria Plum has recently been through an administration and there is already a cost reduction programme in progress, the company says it intends to continue to trade the business as normal initially. It added that further information will be provided on 28th May 2024 alongside the company’s interim results for the 6-month period ended 31st March 2024.
Mark Radcliffe, CEO of Victorian Plumbing, commented: “I am delighted to announce the acquisition of Victoria Plum, a well-established brand with a solid base of customers, suppliers and product ranges. The acquisition aligns with our ambitions to accelerate our growth. We are pleased to welcome the existing Victoria Plum team to our group and look forward to continuing to provide customers with a fantastic range of bathroom products and accessories.
“This acquisition represents another exciting strategic milestone for the company and, together with the investment in our new distribution centre, provides a unique opportunity to deliver increased shareholder return.”
Headquartered in Skelmersdale, Victorian Plumbing employs over 600 staff across 9 locations in Lancashire, Manchester and Birmingham. It offers a wide range of over 34,000 products to B2C and trade customers, with more than 130 own and third party brands across a wide spectrum of price points.
